Question 1:

a) Complete the table below by classifying the cost items. You need to repeat an amount if it belongs to more than one category. You must provide a total for each column. (8 marks)

b) Coffee-Culture Ltd manufactures barista quality coffee machines. The unit selling price is $900 and the variable cost per unit is $630. The monthly fixed cost for August 2020 is $27,000. Answer the questions below in the spaces provided. (Show the formula and workings for each)

Required: Answer the following questions in the spaces provided:

Question 2:

Required: Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. (15 marks)

Additional information to complete the worksheet:

The equipment of $67,500 was purchased on 1 March 2020. The straight-line depreciation method is used with a useful life of 3 years and a scrap value of $2,700. No depreciation is ever recorded.

The $75,000 bank loan was borrowed on 1 May 2020. It is an interest only loan. The interest rate is 0.8% per month. No interest is ever paid or recorded.

The supplies on hand at 30 June 2020 were $650.

The prepaid insurance balance represents the annual premium paid on 1 April 2020.

$2,500 of unearned revenue has been earned by 30 June 2020.

a) Provide a description for transaction (a). Include the amounts of the transaction in your description. (2 marks)

The following information relates to YogaGuru for the year ended 30 June 2020.

Prepaid rent

14,500

Accounts payable

52,700

Electricity expense

7,500

Unearned revenue

11,600

Wages payable

12,500

Accumulated depreciation- Equipment

8,600

Capital

?

Rent expense

32,000

Cash at bank

75,800

Wages expense

135,400

Supplies

3,900

Service revenue

282,600

Bank Loan (due in 2025)

38,000

Accounts receivable

7,500

Drawings

4,000

Equipment

235,200

Depreciation expense-Equipment

8,600

Required: Make an Income Statement (6 marks), a fully classified Balance Sheet in narrative format (12 marks) and a Statement of Changes in Equity (4 marks) for the year ended 30 June 2020 for YogaGuru.

b) Provide a description for transaction (b) indicating the amount (s) of the transaction in your description (2 marks)

c) List all adjusting entries and provide a description for each adjusting entry: (2 marks)

d) Calculate the following balance. For each balance, indicate if it is a debit balance or credit balance. (4 marks)

Items

Balances

Debit or Credit

Total Current Assets

Total Assets

Total Liabilities

The ending balance of Capital